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AN ACT
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relating to a liquidity stress test for certain insurance |
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companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 823, Insurance Code, is |
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amended by adding Section 823.0596 to read as follows: |
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Sec. 823.0596. LIQUIDITY STRESS TEST. (a) In this section: |
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(1) "Liquidity stress test framework" means an |
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evidence-based analysis that aims to capture the impact on |
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financial markets of aggregate asset sales of certain insurers |
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under various liquidity stress scenarios. |
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(2) "Scope criteria" means the designated exposure |
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bases, including minimum magnitudes of the bases for a specified |
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data year, adopted by the commissioner by rule under Subsection (e) |
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to establish a preliminary list of insurers included in the |
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liquidity stress test framework for that data year. |
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(3) "Ultimate controlling person" has the meaning |
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assigned by Section 823.055. |
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(b) The ultimate controlling person of an insurer shall file |
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the insurer's results of a specific year's liquidity stress test |
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performed using the liquidity stress test framework adopted by the |
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commissioner by rule under Subsection (e) if: |
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(1) this state is the lead state of the insurer's |
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group; and |
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(2) the insurer or the insurer's group meets the scope |
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criteria. |
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(c) The filing must be made on the reporting template for |
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the relevant year adopted by the commissioner by rule under |
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Subsection (e). |
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(d) The commissioner may exempt from the filing requirement |
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for a data year an insurer described by Subsection (b) after the |
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commissioner consults with other state insurance commissioners |
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regarding the impact that exempting the insurer may have on the |
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aggregation of liquidity stress test results filed by other |
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insurers with those states. |
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(e) The commissioner by rule shall adopt a liquidity stress |
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test framework, including scope criteria and reporting templates, |
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consistent with the framework published by the National Association |
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of Insurance Commissioners to facilitate the aggregation of results |
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from the liquidity stress test filed with this and other states. |
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(f) The commissioner shall collect the results filed under |
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Subsection (b) and report them to the National Association of |
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Insurance Commissioners in a manner that facilitates the |
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aggregation of other insurers' results filed with this and other |
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states. |
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(g) In addition to the confidentiality protections under |
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Section 823.011: |
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(1) a filing required by Subsection (b) in the |
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possession or control of the department that is obtained by, |
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created by, or disclosed to the commissioner or any other person, |
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including the National Association of Insurance Commissioners, is |
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recognized by this state as being proprietary and to contain trade |
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secrets; and |
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(2) the commissioner and any other person, including |
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the National Association of Insurance Commissioners, who receives a |
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filing required by Subsection (b) may not testify or be required to |
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testify in any private civil action concerning that filing. |
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SECTION 2. This Act takes effect September 1, 2023. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2839 was passed by the House on May 2, |
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2023, by the following vote: Yeas 143, Nays 1, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2839 was passed by the Senate on May |
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24, 2023, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |